EU Needs €1 Trillion a Year to Reach Net-Zero by 2050, Says IRENA Report

Scaling up renewable energy is key to safeguarding the European Union’s energy security and shielding it from fossil fuel price volatility, according to a landmark report released today by the International Renewable Energy Agency (IRENA) in partnership with the European Commission.

The Regional Energy Transition Outlook: European Union—IRENA’s first regional report of its kind—highlights that a swift shift to domestic renewable sources will not only reduce dependency on energy imports but also lower costs and enhance economic competitiveness across the bloc. However, the transition will require unprecedented investment and systemic reforms.

The EU’s renewable power capacity must grow at a rapid pace—doubling annual additions to 122 gigawatts (GW) by 2050, according to the Outlook. By 2030, 70% of the region’s electricity is expected to come from renewables, with projections reaching 90% by 2050.

Massive Infrastructure Investment Needed

The report estimates that transitioning the EU’s energy system will require total investments of €1 trillion annually through 2050—roughly 6% of the EU’s 2024 GDP. Of this, €220 billion per year must go toward expanding and integrating power infrastructure alone. In total, €5.6 trillion will be needed for power sector upgrades by mid-century, representing nearly 80% of Germany’s current GDP.

“Delaying action will only escalate the costs,” warned IRENA Director-General Francesco La Camera. “Strategic investment today is essential. Renewables offer a clear path to price stability and energy independence.”

Jobs, Growth, and Decarbonisation

La Camera emphasized that the energy transition represents a “no-regrets” investment. The EU economy could grow by 2% annually through 2050, while the energy sector could support up to 8 million jobs within the decade.

Dan Jørgensen, EU Commissioner for Energy and Housing, endorsed the findings, saying, “Homegrown renewables will make us more energy independent and resilient, while creating new jobs and boosting innovation. This report is a clear roadmap for achieving a secure and affordable Energy Union.”

Key Targets for 2030

Despite positive momentum, the report warns that deployment rates of renewables and electrification are falling short of EU 2030 and 2050 targets. IRENA calls for urgent coordinated action among EU Member States, and outlines the following critical goals for 2030:

• Boost renewable share of Gross Final Energy Consumption to meet or exceed the 42.5% target.
• Increase wind and solar capacity to at least 1,100 GW, contributing to a total renewable capacity of 1,247 GW.
• Install 46 GW of battery storage, up from just 6 GW in 2023.
• Electrify final energy use to reach 33%, up from 21% in 2023.
• Deploy 51 million heat pumps in buildings, up from 21.5 million in 2023.
• Expand electric mobility, with 100 million EVs on the road by 2030.
• Develop regional hydrogen hubs and large-scale electrolysis facilities.

Urgency in Implementation

The report concludes that while the EU remains a global leader in climate action, the current pace of national implementation is insufficient. Achieving net-zero emissions will depend on accelerating infrastructure development, deepening electrification, and strengthening enforcement of integrated energy planning.

“Time is running out,” La Camera said. “If the EU wants to meet its climate targets and ensure long-term affordability, it must act with ambition—and urgency.”